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IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND, NORTHERN DIVISION * TFWS, INC., t/a BELTWAY FINE WINE & SPIRITS, Plaintiff, v. WILLIAM DONALD SCHAEFER,et al.,

* * * * * CIVIL ACTION NO: WDQ-99-2008

Defendants. * * * * * * * * * * * * * * * * * MEMORANDUM OPINION The United States Circuit Court for the Fourth Circuit has agreed with the district court that Maryland's post-and-hold liquor pricing system and its volume discount ban were established for the proper purpose of "fostering and promoting temperance" and "eliminating the undue stimulation of the sale of alcoholic beverages." TFWS, Inc. v. Schaefer, 325 F.3d 234, 236-237 (4th Cir. 2003)("TFWS II"). The case was remanded to the district court for the determination of "whether, and to what extent, the regulatory scheme serves its stated purpose in promoting temperance." Id. The focus of this essentially factual inquiry was to be "Is the scheme effective?" Id. For the following reasons, the court has

determined that the scheme is not effective and, accordingly, may not be enforced.

I. Background Plaintiff TFWS, Inc. owns and operates a large retail liquor store in Towson, Maryland, known

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as Beltway Fine Wine & Spirits. TFWS sued Maryland's State Comptroller and the Administrator of the Alcohol and Tobacco Tax Unit of the Comptroller's office (together, the "Comptroller"), seeking a declaration that Maryland's regulatory scheme violates

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Maryland Law